The S&P/TSX Composite Index was still in the middle of its recovery back in April. At the time, I’d suggested that investors should target stocks that could put together a great performance over the course of a decade. I’d pointed to equities like Kirkland Lake Gold, which had achieved a 10-year total return of over 6,500% in the 2010s. Today, I want to look at three TSX stocks that have the potential to churn out huge capital growth for Canadians.
This TSX stock has surged during the COVID-19 pandemic
In this hypothetical, we will be playing with $5,000 to invest in three separate stocks. The first stock I want to look at has performed extremely well during the COVID-19 crisis. VieMed Healthcare (TSX:VMD)(NASDAQ:VMD) provides in-home durable medical equipment and healthcare solutions to its client base.
It has focused on in-home ventilators to aid patients with chronic respiratory illnesses. COVID-19 has proven to be a dangerous and highly contagious virus that can wreak havoc on the respiratory system. Because of this, VieMed’s products have seen increased demand.
This TSX stock sank to a 52-week low of $3.36 during the market crash in the middle of March. A $1,500 investment in VieMed would be worth nearly $6,000 as of close on August 12. VieMed’s products and services were already on a promising trajectory before the COVID-19 outbreak. This is a TSX stock that can make fortunes over the next decade.
One healthcare stock that has soared in 2020
WELL Health Technologies (TSX:WELL) owns and operates a portfolio of primary healthcare facilities. Investors should look to target TSX stocks in the healthcare space. This sector was already primed for big growth over the course of this decade. The COVID-19 pandemic has only intensified investor interest.
Shares of WELL Health have climbed 183% in 2020 as of close on August 12. Telehealth services, which involve over-the-phone consultations with physicians and other healthcare professionals, have erupted during the COVID-19 pandemic. WELL achieved record quarterly patient services revenue in Q2 2020 on the back of growth in Telehealth. Its Telehealth visits grew 730% to more than 124,800 visits in the second quarter.
This TSX stock fell to a 52-week low of $1.13 during the market crash in the late winter. An $1,800 investment in WELL Health at this low would be worth just over $7,000 at the time of this writing. Already, our hypothetical $3,300 investment has churned out nearly $10,000 in total returns in less than half a year.
The TSX stock that has burst onto the scene
Andlauer Healthcare (TSX:AND) made its debut on the TSX index in December 2019. This supply chain management company provides a platform of customized third-party logistics (3PL) and specialized transportation solutions for the healthcare sector in Canada. Its stock has climbed 86% so far this year.
In Q2 2020, the company reported EBITDA growth of 1.2% to $18 million. Its year-to-date performance has outpaced the previous year, even in the face of the COVID-19 pandemic. Andlauer’s 52-week low still stands at its starting market price of $18 per share. A $1,700 investment in this TSX stock at this price point would be worth over $3,500 as of close on August 12.
To conclude, a $5,000 investment spread across these three stocks at their 52-week low would have netted investors over $11,500 in profit in a few short months.
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Fool contributor Ambrose O'Callaghan owns shares of KIRKLAND LAKE GOLD LTD. The Motley Fool owns shares of and recommends Andlauer Healthcare Group Inc. and Viemed Healthcare Inc.